This paper explores the intricate challenges of environmental management in highly urbanized cities through the lens of the urban renewal regime, specifically examining the Iloilo-Batiano River System in the Philippines. For over two decades, local and national actors have collaborated to rehabilitate the river, with the Iloilo River Esplanade serving as the centerpiece for commercial, tourism, and social revitalization. However, the study identifies persistent issues, including declining water quality due to inadequate septage regulation, coordination gaps between local government units (LGUs) and national agencies, and the outsized influence of national political figures and private developers. The findings highlight how the Philippines' unitary system creates a dependency on national fiscal resources, potentially stunting local civil service autonomy. The authors conclude by proposing policy adjustments to clarify inter-agency protocols, reintegrate private stakeholders, and institutionalize dedicated resources for long-term river management.